What Does the Stamp Duty Holiday Extension Mean for Buyers & Sellers?
With the Stamp Duty Holiday originally set to end on the 31st March 2021, the recent Budget announcement from Chancellor Rishi Sunak of a 3-month extension is great news to many people.
What is the Stamp Duty Holiday?
The starting rate of stamp duty was £125,000, but last summer this was temporarily raised to £500,000 for property sales in England and Northern Ireland. This was seen as a solution to the financial hit many buyers saw from the global pandemic. It was introduced as a way for buyers to save money, but also to boost the property market which had seen prices consistently fall since the start of lockdown.
This stamp duty holiday was meant to end on 31st March, but it has been revealed that it will lower to £250,000 on 30th June. Then, it will eventually return to the usual starting rate of £125,000 by the end of September.
The Effects on Property Buyers & Sellers
The Impact of the Stamp Duty Holiday Extension on Buyers
The COVID-19 pandemic, national lockdowns and restrictions have all collectively had a massive impact on property sales. There has been a series of interruptions regarding the property chain and the process of buying property, including severe delays on completion dates.
This extension will come as a significant relief to any buyers still in the process, especially ones who were considering pulling out due to the near deadline. With more time available now and the proposed gradual decline back to the original starting rate, it is believed that there will be a surge in enthusiasm for the property market, plus reassurance for current buyers.
The Impact of the Stamp Duty Holiday Extension on Sellers
Following on from the point of a surge in enthusiasm for the property market, this is a great factor for property sellers. The announcement of the extension brought an influx of house-hunters, so if you needed encouragement to put your house on the market, this is it.
By working out the logistics for putting your house up for sale and being able to complete before the extension period is up, it is clear that March is the month to put this all into action.
Other Property Updates from the Chancellor
In addition to the Stamp Duty Holiday Extension, Rishi Sunak also announced a new “mortgage guarantee” in the Budget. This is another update which is sure to bring benefits for both buyers and sellers in the property market as it allows even more people to become homeowners.
Specifically targeting homebuyers struggling to get a deposit together, this Government scheme will guarantee mortgages with a 5% deposit on homes costing up to £600,000. Starting in April 2021, it will continue through to the end of 2022 with a number of lenders offering 95% mortgages over the next coming months.
Reliable Residential Conveyancers at Caversham Solicitors
At Caversham Solicitors, we understand the stress that both buying and selling a property can bring. This is why we always approach every client with the same compassion and empathy, along with our technical expertise.
If you are thinking of starting your journey to buy your first property, to move into a new property, or to sell your property, make sure to get in touch.
with us. Within our friendly team, you will be assigned a dedicated conveyancer who will be with you every step of the way. One who will be up to date with all of these new regulations and Government schemes, so you can stay on track throughout the entire process.